ConsultingCareerPrimer.2014–2015
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Plain and simple, MBAs love consulting.
This is no doubt in part because the average median salary and signing bonus at the leading 15 MBA
programs are higher for consulting positions than for roles with other functions.
Note: All compensation figures are based on placement reports from the classes of 2013 and 2014 at the top 15 MBA programs;
some variations exist within these reports, so attempts were made to harmonize data.
What do the data say about consulting recruiting?
Percentage of graduates entering jobs with a consulting function at the top 15 MBA programs in 2013
$18,700
$116,200
Average MBA Graduate
$80,000
$16,000
Pre-MBA Analyst/Associate
$25,000
$135,000
Consulting
Average base salary
Average bonus
4
The Org Chart
PartnerTotal compensation of $500K-$1M+
PrincipalTotal compensation up to $350K–$500K
depending on seniority
Consultant (Post-MBA)$125K–$135K plus $25K signing bonus
with performance bonus up to 30%
Business Analyst (Pre-MBA)$75K–$80K plus $5K signing bonus with
performance bonus up to 20%
ManagerTotal compensation up to $250K
with base around $150K–$175K
Source: Multiple interviews with those in the field.
Note: Compensation figures for business analyst and consultant reflect a first-year salary and bonus.
Business Analyst/Associate (Pre-MBA):
Business analysts are the most junior members of a case team.
Although their responsibilities vary by firm, in general, they are tasked
with “grunt work” that encompasses collecting and analyzing data.
On one day, a business analyst might interview a client’s employees;
on another, he/she might model the impact of a regulation change
on a client’s profit and loss statement. Business analysts spend a
lot of time using Excel and PowerPoint, and they are accustomed to
working late nights. As they advance to more senior analyst roles,
they tend to be given ownership of a work stream within a project,
case, or study. (Firms use different terms to describe client projects
and titles, and you would be wise to learn the unique vocabulary your
target firms use.) At the end of two years, business analysts can go to
business school, transition to another firm, take a role within a client
organization, or progress further within the firm.
5
Consultant(Post-MBA):
After working for three years as a business analyst at a firm or
completing their MBA degree, consultants own a work stream in a
project. They are responsible for structuring data analysis and for
collecting and evaluating data—all with the guidance and feedback
of their project leader or manager. Although they tend to handle tasks
similar to those of analysts, they are given more responsibility and
often have greater opportunities to interface directly with clients. In
addition, they can be tasked with supervising junior team members.
Consultants are generalists, serving multiple industries and functions
rather than specializing in one, and they usually invest two to three
years in the role before they become project leaders or seek outside
opportunities. Because consulting firms have a pyramid-shaped
structure (i.e., a lot of consultants, fewer project leaders, and even
fewer managers), they tend to embrace an “up or out” culture in which
strong and continually improving performance is required to remain at
the firm. Consequently, a number of consultants leave the industry at
this stage.
Project leaders possess significant consulting experience and are
responsible for the day-to-day management and final delivery of
projects. This position is sometimes regarded as the most difficult role
in this industry due to the simultaneous downstream and upstream
management required. For example, on the one hand, project leaders
are responsible for solving problems that arise with the project,
structuring the work stream, ensuring delivery of the final project by
the case team, and managing and developing junior team members.
They also interact with clients, which means they must take part in
potentially lengthy meetings to develop relationships. On the other
hand, project leaders must report to the partners who sold the case.
Project leaders must ensure that the case work is done according
to the firm’s quality standards and in a timely fashion. At this career
stage, specialization occurs. Project leaders tend to start focusing on
one or more practice areas, which are categorized by industry (e.g.,
consumer goods, technology, financial services) and by function (e.g.,
supply chain).
Manager (Project Leader/Engagement Manager):
6
Principal/Associate Principal:
Principals are the bridge between project leaders and partners;
one can think of them as “partners in training.” The big change
that happens at the principal level is a shift of focus from project
management to client management. Similar to project leaders,
principals oversee projects, which means they are responsible for
the final delivery of case work. However, they tend to work on more
complex and high-profile cases that require extensive interaction
with executives. In addition, principals often take the lead in writing
and coordinating proposals and participating in sales meetings. They
are in active contact with their set of key clients to generate new
leads. They have built significant market knowledge in one or more
areas, demonstrate thought leadership, and build the firm’s offerings.
Principals also take office leadership roles such as head of university
recruiting or head of the social committee. Although promotion
horizons vary by firm, the duration of the principal role is typically two
to five years.
Partner/Director: Partners are owners of the firm and are usually elected to their position
by the rest of the partnership. Their primary responsibility is to sell
case work, maintain client relationships, and deliver project work to
the client. They have the ultimate authority to approve work, and they
manage relationships with clients at the senior most level (e.g., they
frequently lunch with CEOs). They are typically aligned with one or
more practice areas and take leadership of them. In addition, partners
have significant responsibility for thought leadership (e.g., publishing
articles in Harvard Business Review, bcg.perspectives, or McKinsey
Quarterly) and additional activities within the firm such as training,
recruiting, and staffing (i.e., placing consultants on cases). The partner
role can encompass different levels. For example, some firms have a
senior partner role that requires several years of employment within
the partnership before advancement, and promotion depends on
performance, sales, and service to the firm. In addition, the “up or
out” culture persists even at this level; partners are still required to
continuously improve and advance to maintain their position within the
firm.
7
What is the job?Management consulting firms provide outsourced brains to assist clients with
tricky or sensitive problems. Consultants advise clients on strategic changes
and develop analytical answers to client questions. As a consultant, you might
help formulate a new corporate strategy for a B2B manufacturing company,
conduct strategic due diligence for an acquisition in the medical device industry,
strategize on a new product launch in a remote geographic region for a bank,
troubleshoot brand underperformance for a consumer goods company, or help
retool the supply chain for a food and beverage distributor. You also might help
a company with downsizing or with operationalizing a new strategy. Depending
on the firm and the types of projects to which you are assigned, you may
find yourself tackling a new challenge in a new location every three weeks or
camped out in Kalamazoo for an entire year.
8
No, really, what is the job?All this may sound pretty sexy, but what does “formulate a new corporate strategy for a B2B manufacturing
company” or “troubleshoot brand underperformance for a consumer goods company” really mean? Here
are some project experiences of actual first- and second-year consultants at McKinsey & Company, Bain &
Company, and BCG (the Boston Consulting Group):
We had to help decide which storefronts
of a car parts company should be closed or
expanded and where the company should
build more. As a first-year consultant, I
looked at sales data, population data, and
local competition.
We advised a packaged foods company on
improving its in-store placement. For two
weeks, I actually drove around to various
grocery stores and watched what customers
did when they approached the hot dog
aisle. I conducted surveys. A few times, the
storekeepers kicked me out. I turned the
pictures I took, survey data, and testimonials
into my part of our final PowerPoint
presentation to the client.
A technology products company had a new
technology, and they needed to decide what
to do with it. I helped assess the market
potential of this technology to replace
activities people were currently doing on
paper. I had to guesstimate—using real data
and modeling—the potential applications and
model out which one had the biggest payoff.
My job was to interview constructing
contractors to help decide if a major home
improvement center should enter the lumber
market. I had to help them understand
whether they could expect to get enough
business from medium- to large-scale
contractors to justify the costs associated
with entering the new market and reaching a
different customer base.
A hospital chain wanted to respond to the
threat of surgery centers taking away its
most profitable procedures—certain elective
ones that help subsidize the less sexy
but necessary units like trauma and burn
centers. As a consultant, I had to determine
the profitability of every kind of insurance
transaction and see if we could partner with
these centers to maintain profits.
A new CEO was making changes to
the organizational structure in a large
conglomerate consumer goods company. I
had to work with the top managers in HR
and finance to make difficult decisions about
which roles to keep, which to restructure,
and which to eliminate. Then I had to help
them manage the communication to staff
about these changes in a way that disrupted
headquarters function as little as possible."
9
What is good about the job?The siren song of consulting is variety. At most firms, at least in your first couple
of years, you will be forced to cross-train—joining project teams working across
functions, industries, and geographies. The broad exposure you thereby gain
to a wide diversity of business problems prepares you to face any number of
challenges throughout the rest of your career and trains you to think about them
strategically, holistically, and creatively.
But a job in consulting offers other perks as well:
• The opportunity to travel
• Generous compensation and benefits
• Exposure to C-level executives and issues early in your career
• A well-defined career path: Business Analyst � Consultant � Manager �
Principal � Partner
• A high-powered network of colleagues and clients
• Outplacement support when you are ready to transition to your next job
10
But surely the job has pain points, right?A consulting role does involve some potential drawbacks:
• The necessity of travel
• An unpredictable schedule and long hours
• A steep learning curve and an “up or out” culture
• The possibility of a new “boss” on every project
• A continual focus on “areas for development”
A job in consulting presents one of the best opportunities for growth and learning at an
early stage in your career. The downside is that you almost never have a chance to sit
still. So as soon as you have established yourself as an Excel whiz, for example, you
will then be encouraged to tackle client relationships and human dynamics on your
next project. Relying on the same skills that make you a great entry-level consultant
will make you a poor project manager; at each level, new skills are required. The job
constantly challenges and stretches you, and some consultants complain that the
unceasing focus on weaknesses can get tiring after a while. Add to that the necessity
to impress each new “boss” or project manager you encounter, and a consulting job
could definitely take a few years off your life, especially if you do not approach it with
the right mind-set and maintain a sense of humility and humor.
11
What is the secret to success?The one thing you must understand to hit the ground running in consulting is how the culture works.
Consulting culture is both entrepreneurial and hierarchical, as paradoxical as that may seem—these two
concepts truly can and do coexist. You can certainly create your own destiny, chart a course for yourself in
the direction you want, and choose the kinds of work you do. At the same time, however, you must respect,
understand, and navigate the hierarchy: you will need to cultivate relationships with people senior to you,
identify mentors and champions who will lobby to work with you come staffing and promotion time, and
establish a good reputation so that you can steadily advance your position. No one will spoon-feed you,
and if you are not looking out for your career development, no one will. You will spend a big part of your first
year learning to communicate in the style of your firm and to follow its processes, hierarchies, and norms.
Dedicate yourself to mastering the network, politics, and expectations of the job, and you will lay a foundation
for medium- and long-term success.
The burden is on you to work the political environment, get staffed, build a network, and create a long-term place for yourself in the firm.
12
Who are the big fish?When most people say, “management consulting,” they are referring to “MBB”: McKinsey & Company, Bain &
Company, and BCG (the Boston Consulting Group), also known as the Big Three. These three firms typically
claim the majority of post-MBA consulting hires. While they have much in common—they all seek to hire
the best and brightest, tackle strategic C-Suite problems, and offer broad exposure to diverse industries,
functions, and geographies (read: require some degree of travel)—culturally, they vary tremendously. If you
read between the lines, you will see that the firms’ key messaging about themselves on LinkedIn reveals these
differences (make special note of the parts we have bolded in the following descriptions):
“Our scale, scope, and
knowledge allow us to
address problems that no
one else can. We have deep
functional and industry
expertise as well as breadth
of geographical reach.”
The oldest, largest, and
best known of the Big Three,
McKinsey & Company
leverages its deep experience
to provide relevant solutions to
client problems.
Buzzwords:
Experience
Structure
Organization
“We work with top
executives to help them
make better decisions,
convert those decisions
to actions, and deliver the
sustainable success they
desire.”
The youngest and smallest of
the Big Three, Bain & Company
has the strongest firm culture—
stressing camaraderie and
teamwork—and places greater
emphasis on clients’ market
performance as a measure of
success.
Buzzwords:
Camaraderie
Teamwork
Results
“Our customized approach
combines deep insight into
the dynamics of companies
and markets with close
collaboration at all levels of
the client organization.”
Applying a “clean slate”
approach to each client
problem, BCG leverages
its consultants’ intellectual
horsepower to create
innovative solutions in
collaboration with clients.
Buzzwords:
Academic
Innovative
Collaborative
13
Who are other notable players in this space?Major changes in the landscape of professional service firms over the past few decades have made the rest
of the management consulting field a little confusing to follow, but here are some other significant players:
Strategy& merges the management consulting arm
of assurance giant PwC (PricewaterhouseCoopers)
with the recently acquired (April 2014) Booz &
Company. If the MBB set had a fourth member that
practices fairly pure strategy consulting to top firm
management, it would be Strategy&.
Deloitte, another huge recruiter of MBA talent, is
the management consulting division of Deloitte
Touche Tohmatsu Limited, one of the Big Four
accounting firms. It acquired BearingPoint,
KPMG’s management consulting division, in 2009
and Monitor Group, the firm founded by Michael E.
Porter of “five forces” fame, in 2012.
Formerly the business and technology division of
defunct Big Five accounting firm Arthur Anderson,
Accenture offers technology and outsourcing
services in addition to management consulting,
making it the most technology-focused firm on this
list.
“A.T. Kearney is a global team of forward-thinking,
collaborative partners that delivers immediate,
meaningful results and long-term transformative
advantage to clients.” Similar to the firms we have
already discussed, A.T. Kearney consults on the
CEO agenda—often with a more operational focus
than its purely strategic peers.
Booz Allen Hamilton provides provides
management consulting, technology, engineering,
and security services to civilian government
entities, including defense and intelligence
agencies. The commercial strategy division of
Booz was spun off in 2008 to become Booz &
Company, which was later acquired by PwC (see
the Strategy& description).
The current Oliver Wyman is the product of a
merger between Mercer Oliver Wyman, Mercer
Management Consulting, and Mercer Delta in
2007. Originally founded in 1984 by two former
Booz Allen Hamilton partners, Oliver Wyman is the
subsidiary of public company, Marsh & McLennan
Companies.
14
How do I get the job?Each firm has its own nuanced approach to recruiting, but the broad strokes are the same. You will need to
demonstrate the following:
1. Strong intellectual horsepower and a track record of success in a
challenging field
2. An ability to structure and analyze ambiguous problems in an
improvisational manner, to work adeptly with numbers and calculations,
and to clearly explain your thought processes
3. Persuasive and analytical communication skills that engender confidence
and trust in you
In addition to having strong undergraduate grades and a good GMAT score (typically 710 or higher, especially
at schools with grade nondisclosure, where the only recent data point firms can use to assess your intellect is
your GMAT score), you will need to perform well in case and behavioral interviews. Some MBA students say
that prepping for case interviews is like taking an entire extra class during recruiting season. However, most
also note that the process is worthwhile in its own right because it teaches them to think in a structured way
and communicate their ideas clearly.
You will also want to network with your target companies. This includes attending company-sponsored
events, befriending classmates who have worked at the firms, and capitalizing on every opportunity to meet
firm representatives through informal and club offerings. Taking these steps to connect with the companies
for which you want to work is a necessity no matter which industry you target. Doing so helps you and the
firm(s) assess mutual fit and paves the way for your success in interviews.
If consulting is your chosen industry for a summer internship or post-MBA position, get started now building
your network, conducting informational interviews with classmates and friends at target firms, creating a
consulting-targeted resume, and preparing for case interviews. To learn more about how an MBA Career
Coach can assist you in securing your desired position through elite training, targeted skill development,
and expert guidance as you navigate the recruitment process, schedule a free consultation with us at www.
mbacareercoaches.com/consult/.
15
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